And the operators who know what they’re doing are already ahead.
I try to be pragmatic with a hint of optimism, but something large and significant is happening with ad agency holding companies. There was a time when the only way to get best-in-class strategy or creative was to hand a massive check to a holding company and wait for 19 people to align on your hex code. Then generative AI arrived. Now, a three-person team with ChatGPT and taste can outpace a global agency before the big firm has finished “gathering inputs.”
The tectonic plates are moving. The traditional agency model isn’t evolving…it’s eroding.
Big Agencies Are Running Out of Excuses
Barclays recently downgraded WPP, Omnicom, and IPG, citing sluggish growth and existential threats from AI disrupting their billing models [1]. This is in no small part because Meta, Google, and Amazon are investing billions to make ad generation as automated as media buying [2]. Meanwhile, morale is tanking. Only 32% of holding-company agency employees say they’re satisfied with their work environment, and nearly half are actively job-hunting [3]. Creative leaders are fleeing. Clients are questioning retainers. And C-suites are merging out of desperation (and fear), not strategy [4].
If this were a direct to consumer brand, someone would be whispering “pivot or perish.”
In-House Agencies Continue Gaining Ground
According to the ANA, 82% of brand marketers reported having in-house agencies in 2023 — up from 58% in 2013 [5]. The drivers: cost control, faster timelines, and tighter brand alignment. Not revolutionary, just rational. It’s important to point out, having an “in-house agency” doesn’t mean a full solution. This spectrum includes fully integrated advertising/social/experiential/PR/events to solely a production arm. However, the trajectory can’t be ignored. Even the World Federation of Advertisers confirms the trend: 66% of major brands now have in-house creative teams, and most plan to bring even more work inside [6]. But in-house teams aren’t built for everything. They’re great at brand-safe, volume-heavy execution. They’re not typically staffed for tentpole campaigns, bold pivots, or high-stakes reinvention. When things get weird, strategic, or fast, they still call for backup.
AI Has Unleashed a New Breed of Creative Operator
However, the “agency versus in-house debate” isn’t the discussion anymore. The real winners are the people who operate outside the old definitions. Creative and Strategy functions are merging as Creative Operators. Think creative specialists who operate like strategists, move like startups, and wield AI like a precision tool instead of a gimmick. To be clear, creative operators aren’t freelancers. They’re not moonlighters. They’re VERY high-functioning creative organisms. Sometimes a team of three. Sometimes a solo creative operator with a Notion workspace and vengeance in their heart. They don’t ask for AOR status. They get called when everyone else is stalled.
AI Services Are Climbing Fast
Smaller and mid-size Agencies see this happening. The percentage of agencies increasing their team’s AI Training offering AI-powered services has grown from 10% in 2023 to a projected 17% in 2025 [7]. What’s driving it? Clients aren’t just asking for ideas — they’re asking for speed, scale, and smarts. That means dynamic content generation, automated variant testing, CRM-ready personalization, and strategy that ships in hours, not quarters. Those who are successful will leverage their scrappiness and agility to deliver efficiently and at scale.
The New Model: Fast, Focused, and Embedded
So, where is this going? Tomorrow’s (and maybe even today’s) most valuable partners won’t come with overhead and awards reels. They will come with:
- AI-fueled personalization at hyperscale (which I personally believe is the future of advertising)
- Strategic clarity in half the time
- Executional muscle in weird, high-stakes moments
- No interest in bureaucracy, politics, or slide theater
In short: they get the work done. No layers. No ceremony. Just speed. These operators aren’t replacing in-house teams or agencies. They’re bypassing them. When the problem is too messy for internal teams and too urgent for the pitch process, they’re already halfway done.
I find it fascinating and terrifying. Candidly, I’ve not met a person yet who can do this, but I have no doubt they are out in the world. Are you this person? Do you know this person? I’d love an introduction.